Benchmark indices plummeted to 9-month lows Monday afternoon as the trade war between major economies deepened, triggering panic selling across global markets. By 12.39 PM, the Sensex crashed 3,232.15 points (-4.29 per cent) to 72,132.54 while the Nifty 50 plunged 1,034.35 points (-4.52 per cent) to 21,870.10, extending the morning’s brutal sell-off.
Market breadth remained overwhelmingly negative with 3,587 stocks declining against just 346 advances on the BSE. An alarming 752 stocks hit 52-week lows compared to only 45 reaching 52-week highs, underscoring the broad-based nature of the sell-off. Additionally, 566 stocks hit their lower circuits while only 132 touched upper circuit limits.
The panic was reflected in the Nifty VIX (volatility index), which spiked 55 per cent in what market observers noted could be one of the highest single-day jumps ever recorded.
Sectoral performance showed widespread weakness with metal and IT sectors emerging as the worst performers. The Nifty Financial Services index dropped 1,168.40 points (-4.72 per cent), while the Banking index fell 2,239.95 points (-4.35 per cent). The Nifty Midcap 100 index was down 2,410.15 points (-4.76 per cent).
Among the Nifty 50 components, not a single stock managed to stay in positive territory. Trent led the losses, crashing 16.67 per cent to ₹4,635.60. Other major losers included Tata Steel (-9.44 per cent), JSW Steel (-9.28 per cent), Shriram Finance (-9.19 per cent), and Tata Motors (-8.35 per cent).
The market collapse follows China’s retaliatory 34 per cent tariffs and escalating tensions after the United States imposed reciprocal tariffs on key trading partners, including China and India, on April 2nd.
Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services, commented: “Amid escalating trade tariff uncertainties, market volatility is expected to persist in the near term. However, long-term investment opportunities remain viable at current levels.” He suggested Finance, Oil & Gas, Consumption, and FMCG sectors might offer relative stability for long-term investors.
From a technical perspective, Upadhyay noted the Nifty may retest the 21,500 mark, with potential for further decline toward 21,000 if this level breaks. Resistance is expected near 22,800.
Investors now await the upcoming RBI monetary policy meeting on Wednesday, where a 25 basis point rate cut is anticipated, which could provide some relief to the battered market sentiment.
Published on April 7, 2025
